Stylized Facts on Productivity Growth : Evidence from Firm-level Data in Croatia

Drawing on a representative sample of firms, this paper presents some microeconomic evidence on the productivity growth process in Croatia since the onset of recession (2008-12). Four types of results are highlighted. First, there is a persistent (...

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Main Authors: Iootty, Mariana, Correa, Paulo, Radas, Sonja, Skrinjaric, Bruno
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank Group, Washington, DC 2014
Subjects:
GDP
ICT
WEB
Online Access:http://documents.worldbank.org/curated/en/2014/07/19898911/stylized-facts-productivity-growth-evidence-firm-level-data-croatia
http://hdl.handle.net/10986/19387
id okr-10986-19387
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ADVERTISING
AGGREGATE PERFORMANCE
AGGREGATE PRODUCTIVITY
AGGREGATE PRODUCTIVITY GROWTH
AGRICULTURE
BANKRUPTCY
BENCHMARKING
BRANCH
BUSINESS ACTIVITIES
BUSINESS ASSOCIATIONS
BUSINESS ECONOMICS
BUSINESS ENTRY
CHAMBER OF COMMERCE
COMPANY
COMPETITIVENESS
COMPUTERS
CONTESTABILITY
CREATIVE DESTRUCTION
DEFLATION
DEFLATORS
DEVELOPMENT POLICY
DIVERSIFICATION
DOMESTIC MARKET
E-MAIL
ECONOMIC ACTIVITY
ECONOMIC DEVELOPMENT
ECONOMIC EXPANSION
ECONOMIC OUTLOOK
ECONOMIC RESEARCH
ECONOMIC SECTORS
ELECTRICITY
EMPLOYEE
EMPLOYMENT
ENTREPRENEURSHIP
ENTRY CONTRIBUTION
ENTRY RATE
EQUIPMENT
EXPORTS
FACTOR MARKETS
FINANCIAL CRISIS
FINANCIAL SERVICE
FINANCIAL SERVICES
FINANCIAL SUPPORT
FIRM DYNAMIC
FIRM DYNAMICS
FIRM DYNAMISM
FIRM ENTRY
FIRM EXIT
FIRM LEVEL
FIRM PERFORMANCE
FIRM PRODUCTIVITY
FIRM SIZE
FIRM TURNOVER
FIRM-LEVEL PRODUCTIVITY
GDP
GDP PER CAPITA
GLOBAL MARKETS
GROSS DOMESTIC PRODUCT
GROSS VALUE
GROWTH RATE
HOLDING COMPANIES
ICT
IDENTIFICATION NUMBER
INDUSTRIAL REVOLUTION
INEFFICIENCY
INFORMATION SERVICE
INNOVATION
INNOVATION PROGRAM
INPUT FACTORS
INSPECTION
INSTALLATION
INTERNATIONAL COMPETITION
INTERNATIONAL MARKETS
INTERNATIONALIZATION
JOB CREATION
LABOR COST
LABOR PRODUCTIVITY
LABOUR
LABOUR COST
LABOUR PRODUCTIVITY
LARGE ENTERPRISES
LEASING
MANAGEMENT SERVICES
MANUFACTURING
MARKET ECONOMIES
MARKET ENTRIES
MARKET EXIT
MARKET PRICES
MARKET RESEARCH
MARKET STRUCTURE
MARKETING
MATERIAL
MEDIUM ENTERPRISES
MERGERS
MOTION PICTURE
MULTINATIONALS
NET ENTRY COMPONENT
NET ENTRY EFFECT
NET JOB CREATION
NEW MARKET
NEW MARKETS
NEW TECHNOLOGY
NORMAL PROFITS
OPEN ACCESS
OWNERSHIP STRUCTURE
PER CAPITA INCOME
PERFORMANCE INDICATORS
PERFORMANCE MEASURE
PERFORMANCE MEASURES
PRELIMINARY EVIDENCE
PREVIOUS SECTION
PRIVATE CAPITAL
PRIVATE FIRMS
PRIVATE SECTOR
PRIVATE SECTOR FIRMS
PRODUCT MARKET
PRODUCT MARKET REGULATION
PRODUCTION FUNCTION
PRODUCTION FUNCTIONS
PRODUCTIVE FIRMS
PRODUCTIVITY
PRODUCTIVITY DECOMPOSITION
PRODUCTIVITY GAINS
PRODUCTIVITY GROWTH
PRODUCTIVITY PERFORMANCE
PUBLIC ADMINISTRATION
R&D
REAL GDP
RESULT
RESULTS
RETAIL
RETAIL TRADE
SALES
SEARCH
SERVICE INDUSTRY
SERVICE SECTOR
SMALL BUSINESS
SMALL ENTERPRISES
SMALL FIRMS
STATE OWNED ENTERPRISES
SURPLUSES
TECHNICAL ASSISTANCE
TELECOM
TELECOMMUNICATIONS
TELEVISION
TIME PERIOD
TOTAL EMPLOYMENT
TOTAL FACTOR PRODUCTIVITY
USES
VALUE ADDED
VIDEO
WEB
WEB PAGES
WHOLESALE TRADE
WORK ACTIVITIES
spellingShingle ADVERTISING
AGGREGATE PERFORMANCE
AGGREGATE PRODUCTIVITY
AGGREGATE PRODUCTIVITY GROWTH
AGRICULTURE
BANKRUPTCY
BENCHMARKING
BRANCH
BUSINESS ACTIVITIES
BUSINESS ASSOCIATIONS
BUSINESS ECONOMICS
BUSINESS ENTRY
CHAMBER OF COMMERCE
COMPANY
COMPETITIVENESS
COMPUTERS
CONTESTABILITY
CREATIVE DESTRUCTION
DEFLATION
DEFLATORS
DEVELOPMENT POLICY
DIVERSIFICATION
DOMESTIC MARKET
E-MAIL
ECONOMIC ACTIVITY
ECONOMIC DEVELOPMENT
ECONOMIC EXPANSION
ECONOMIC OUTLOOK
ECONOMIC RESEARCH
ECONOMIC SECTORS
ELECTRICITY
EMPLOYEE
EMPLOYMENT
ENTREPRENEURSHIP
ENTRY CONTRIBUTION
ENTRY RATE
EQUIPMENT
EXPORTS
FACTOR MARKETS
FINANCIAL CRISIS
FINANCIAL SERVICE
FINANCIAL SERVICES
FINANCIAL SUPPORT
FIRM DYNAMIC
FIRM DYNAMICS
FIRM DYNAMISM
FIRM ENTRY
FIRM EXIT
FIRM LEVEL
FIRM PERFORMANCE
FIRM PRODUCTIVITY
FIRM SIZE
FIRM TURNOVER
FIRM-LEVEL PRODUCTIVITY
GDP
GDP PER CAPITA
GLOBAL MARKETS
GROSS DOMESTIC PRODUCT
GROSS VALUE
GROWTH RATE
HOLDING COMPANIES
ICT
IDENTIFICATION NUMBER
INDUSTRIAL REVOLUTION
INEFFICIENCY
INFORMATION SERVICE
INNOVATION
INNOVATION PROGRAM
INPUT FACTORS
INSPECTION
INSTALLATION
INTERNATIONAL COMPETITION
INTERNATIONAL MARKETS
INTERNATIONALIZATION
JOB CREATION
LABOR COST
LABOR PRODUCTIVITY
LABOUR
LABOUR COST
LABOUR PRODUCTIVITY
LARGE ENTERPRISES
LEASING
MANAGEMENT SERVICES
MANUFACTURING
MARKET ECONOMIES
MARKET ENTRIES
MARKET EXIT
MARKET PRICES
MARKET RESEARCH
MARKET STRUCTURE
MARKETING
MATERIAL
MEDIUM ENTERPRISES
MERGERS
MOTION PICTURE
MULTINATIONALS
NET ENTRY COMPONENT
NET ENTRY EFFECT
NET JOB CREATION
NEW MARKET
NEW MARKETS
NEW TECHNOLOGY
NORMAL PROFITS
OPEN ACCESS
OWNERSHIP STRUCTURE
PER CAPITA INCOME
PERFORMANCE INDICATORS
PERFORMANCE MEASURE
PERFORMANCE MEASURES
PRELIMINARY EVIDENCE
PREVIOUS SECTION
PRIVATE CAPITAL
PRIVATE FIRMS
PRIVATE SECTOR
PRIVATE SECTOR FIRMS
PRODUCT MARKET
PRODUCT MARKET REGULATION
PRODUCTION FUNCTION
PRODUCTION FUNCTIONS
PRODUCTIVE FIRMS
PRODUCTIVITY
PRODUCTIVITY DECOMPOSITION
PRODUCTIVITY GAINS
PRODUCTIVITY GROWTH
PRODUCTIVITY PERFORMANCE
PUBLIC ADMINISTRATION
R&D
REAL GDP
RESULT
RESULTS
RETAIL
RETAIL TRADE
SALES
SEARCH
SERVICE INDUSTRY
SERVICE SECTOR
SMALL BUSINESS
SMALL ENTERPRISES
SMALL FIRMS
STATE OWNED ENTERPRISES
SURPLUSES
TECHNICAL ASSISTANCE
TELECOM
TELECOMMUNICATIONS
TELEVISION
TIME PERIOD
TOTAL EMPLOYMENT
TOTAL FACTOR PRODUCTIVITY
USES
VALUE ADDED
VIDEO
WEB
WEB PAGES
WHOLESALE TRADE
WORK ACTIVITIES
Iootty, Mariana
Correa, Paulo
Radas, Sonja
Skrinjaric, Bruno
Stylized Facts on Productivity Growth : Evidence from Firm-level Data in Croatia
geographic_facet Europe and Central Asia
Croatia
relation Policy Research Working Paper;No. 6990
description Drawing on a representative sample of firms, this paper presents some microeconomic evidence on the productivity growth process in Croatia since the onset of recession (2008-12). Four types of results are highlighted. First, there is a persistent (and increasing) heterogeneity in the performance of Croatian firms along outcome measures. Second, Croatia lags behind regional peers in entrepreneurship measures, which suggests a comparatively lower economic dynamism. Third, the lack of dynamism displayed by the Croatian economy is confirmed when looking at the firm entry and exit process: the analytical results point to reduced firm dynamism compared with Croatia's peers in Europe and Central Asia. Fourth, the contribution of net entry to overall productivity growth in Croatia is surprisingly negative. This is contrary to what would be expected based on the literature and suggests that the process of "destructive creation" in Croatia has not been efficient, as the market might be eliminating firms that are potentially productive. Policies that foster market contestability should be pursued, especially policies aiming at better product market regulation (such as liberalization of entry into the service sector, particularly retail and infrastructure). Measures to help finance entrepreneurship (in promising sectors) should be used to support enhancements in firm productivity. In addition, appropriate bankruptcy rules play a key role by easing the exit process and allowing low-productive units to leave the market and free resources that can be better used by other, more efficient, firms.
format Publications & Research :: Policy Research Working Paper
author Iootty, Mariana
Correa, Paulo
Radas, Sonja
Skrinjaric, Bruno
author_facet Iootty, Mariana
Correa, Paulo
Radas, Sonja
Skrinjaric, Bruno
author_sort Iootty, Mariana
title Stylized Facts on Productivity Growth : Evidence from Firm-level Data in Croatia
title_short Stylized Facts on Productivity Growth : Evidence from Firm-level Data in Croatia
title_full Stylized Facts on Productivity Growth : Evidence from Firm-level Data in Croatia
title_fullStr Stylized Facts on Productivity Growth : Evidence from Firm-level Data in Croatia
title_full_unstemmed Stylized Facts on Productivity Growth : Evidence from Firm-level Data in Croatia
title_sort stylized facts on productivity growth : evidence from firm-level data in croatia
publisher World Bank Group, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2014/07/19898911/stylized-facts-productivity-growth-evidence-firm-level-data-croatia
http://hdl.handle.net/10986/19387
_version_ 1764443839684149248
spelling okr-10986-193872021-04-23T14:03:52Z Stylized Facts on Productivity Growth : Evidence from Firm-level Data in Croatia Iootty, Mariana Correa, Paulo Radas, Sonja Skrinjaric, Bruno ADVERTISING AGGREGATE PERFORMANCE AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH AGRICULTURE BANKRUPTCY BENCHMARKING BRANCH BUSINESS ACTIVITIES BUSINESS ASSOCIATIONS BUSINESS ECONOMICS BUSINESS ENTRY CHAMBER OF COMMERCE COMPANY COMPETITIVENESS COMPUTERS CONTESTABILITY CREATIVE DESTRUCTION DEFLATION DEFLATORS DEVELOPMENT POLICY DIVERSIFICATION DOMESTIC MARKET E-MAIL ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC EXPANSION ECONOMIC OUTLOOK ECONOMIC RESEARCH ECONOMIC SECTORS ELECTRICITY EMPLOYEE EMPLOYMENT ENTREPRENEURSHIP ENTRY CONTRIBUTION ENTRY RATE EQUIPMENT EXPORTS FACTOR MARKETS FINANCIAL CRISIS FINANCIAL SERVICE FINANCIAL SERVICES FINANCIAL SUPPORT FIRM DYNAMIC FIRM DYNAMICS FIRM DYNAMISM FIRM ENTRY FIRM EXIT FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIRM TURNOVER FIRM-LEVEL PRODUCTIVITY GDP GDP PER CAPITA GLOBAL MARKETS GROSS DOMESTIC PRODUCT GROSS VALUE GROWTH RATE HOLDING COMPANIES ICT IDENTIFICATION NUMBER INDUSTRIAL REVOLUTION INEFFICIENCY INFORMATION SERVICE INNOVATION INNOVATION PROGRAM INPUT FACTORS INSPECTION INSTALLATION INTERNATIONAL COMPETITION INTERNATIONAL MARKETS INTERNATIONALIZATION JOB CREATION LABOR COST LABOR PRODUCTIVITY LABOUR LABOUR COST LABOUR PRODUCTIVITY LARGE ENTERPRISES LEASING MANAGEMENT SERVICES MANUFACTURING MARKET ECONOMIES MARKET ENTRIES MARKET EXIT MARKET PRICES MARKET RESEARCH MARKET STRUCTURE MARKETING MATERIAL MEDIUM ENTERPRISES MERGERS MOTION PICTURE MULTINATIONALS NET ENTRY COMPONENT NET ENTRY EFFECT NET JOB CREATION NEW MARKET NEW MARKETS NEW TECHNOLOGY NORMAL PROFITS OPEN ACCESS OWNERSHIP STRUCTURE PER CAPITA INCOME PERFORMANCE INDICATORS PERFORMANCE MEASURE PERFORMANCE MEASURES PRELIMINARY EVIDENCE PREVIOUS SECTION PRIVATE CAPITAL PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR FIRMS PRODUCT MARKET PRODUCT MARKET REGULATION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVE FIRMS PRODUCTIVITY PRODUCTIVITY DECOMPOSITION PRODUCTIVITY GAINS PRODUCTIVITY GROWTH PRODUCTIVITY PERFORMANCE PUBLIC ADMINISTRATION R&D REAL GDP RESULT RESULTS RETAIL RETAIL TRADE SALES SEARCH SERVICE INDUSTRY SERVICE SECTOR SMALL BUSINESS SMALL ENTERPRISES SMALL FIRMS STATE OWNED ENTERPRISES SURPLUSES TECHNICAL ASSISTANCE TELECOM TELECOMMUNICATIONS TELEVISION TIME PERIOD TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY USES VALUE ADDED VIDEO WEB WEB PAGES WHOLESALE TRADE WORK ACTIVITIES Drawing on a representative sample of firms, this paper presents some microeconomic evidence on the productivity growth process in Croatia since the onset of recession (2008-12). Four types of results are highlighted. First, there is a persistent (and increasing) heterogeneity in the performance of Croatian firms along outcome measures. Second, Croatia lags behind regional peers in entrepreneurship measures, which suggests a comparatively lower economic dynamism. Third, the lack of dynamism displayed by the Croatian economy is confirmed when looking at the firm entry and exit process: the analytical results point to reduced firm dynamism compared with Croatia's peers in Europe and Central Asia. Fourth, the contribution of net entry to overall productivity growth in Croatia is surprisingly negative. This is contrary to what would be expected based on the literature and suggests that the process of "destructive creation" in Croatia has not been efficient, as the market might be eliminating firms that are potentially productive. Policies that foster market contestability should be pursued, especially policies aiming at better product market regulation (such as liberalization of entry into the service sector, particularly retail and infrastructure). Measures to help finance entrepreneurship (in promising sectors) should be used to support enhancements in firm productivity. In addition, appropriate bankruptcy rules play a key role by easing the exit process and allowing low-productive units to leave the market and free resources that can be better used by other, more efficient, firms. 2014-08-15T18:59:24Z 2014-08-15T18:59:24Z 2014-07 http://documents.worldbank.org/curated/en/2014/07/19898911/stylized-facts-productivity-growth-evidence-firm-level-data-croatia http://hdl.handle.net/10986/19387 English en_US Policy Research Working Paper;No. 6990 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Croatia